South Africa’s Mango Airlines Set for Liquidation After Rescue Plan Fails
Mango Airlines, the low-cost subsidiary of South African Airways, is set for liquidation after its proposed rescue plan collapsed. The airline’s business rescue practitioner, Sipho Sono, confirmed that investor Ubuntu Air Services withdrew from the deal on July 31, citing delays, unrealistic timelines, and the loss of funding support.
The withdrawal follows a June ruling by the South African High Court, which blocked the rescue plan after creditor Aviation Co-ordination Services argued it unfairly forced creditors to cede claims without repayment prospects. Sono appealed but has now proposed an amended plan that would see Mango undergo a structured wind-down rather than immediate liquidation.
According to Sono, the new approach would provide creditors with a better recovery. The amended plan will be presented within 15 business days, after which creditors will vote. If approved, creditors could receive 70% of the projected payout within 30 days, with the remainder distributed over three to five months, once outstanding unflown ticket liabilities are verified. The expected recovery is estimated at 12.18 cents in the rand (USD0.0068).
Mango has been in business rescue since July 2021 and no longer holds valid operating licenses. The airline has about ZAR382.5 million (USD21.7 million) in cash but faces significant liabilities, including ZAR207.1 million (USD11.7 million) in disputed tax debts.
The structured wind-down marks the end of Mango’s three-year struggle for survival, closing the chapter on one of South Africa’s most prominent low-cost carriers.
Related News: https://airguide.info/?s=Mango+Airlines, https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com